PRECIOUS-Gold climbs to near 1-week high on dollar slide, stimulus optimism

* Dollar index .DXY slips 0.4%
* Mnuchin, Pelosi talk about U.S. coronavirus relief
measures
* Market awaits Trump-Biden debate at 9 p.m. ET (0100 GMT)
* Interactive graphic tracking global spread of coronavirus:
https://graphics.reuters.com/world-coronavirus-tracker-and-maps/

(Adds details about aid deal timeline, updates prices)
By Arundhati Sarkar
Sept 29 (Reuters) - Gold rose to its highest in nearly a
week on Tuesday as the dollar weakened and hopes rose for
additional fiscal stimulus for the American economy, ahead of
the first U.S. presidential debate.
Spot gold XAU= gained 0.9% to $1,896.96 per ounce at 1:58
p.m. EDT (1758 GMT), while U.S. gold futures GCv1 settled up
1.1% at $1,903.20.
"As we see better prospects for stimulus, we understand
there is a tendency to weaken the domestic currency, in this
case weaken the dollar and support gold and silver," said David
Meger, director of metals trading at High Ridge Futures.
At this point, U.S. Treasury Secretary Steve Mnuchin and
House Speaker Nancy Pelosi "slowly coming to terms over the
second stimulus plan is obviously a supportive environment," he
added.
Pelosi said on Tuesday she hoped to have a coronavirus aid
deal with the White House this week, after speaking with
Mnuchin. This comes after Pelosi on Monday said Democratic lawmakers
unveiled a new $2.2 trillion coronavirus relief bill.
Gold, seen as a hedge against inflation and currency
depreciation, has gained 25% so far this year, supported by
monetary stimulus from major central banks and governments.
Helping bullion, the dollar was down 0.4% against a basket
of other major currencies .DXY as markets waited for the first
presidential debate between President Donald Trump and
Democratic rival, Joe Biden at 9 p.m. ET (0100 GMT). USD/
"The tide may be shifting slightly back to gold's favor,"
James Steel, chief precious metals analyst at HSBC said in a
note.
"As the focus of the market shifts more decisively to the
U.S. elections and the uncertainty that this election cycle
brings, it looks like gold and silver have been given a reprieve
from last week's heavy liquidation."
Silver XAG= rose 2.6% to $24.33 per ounce, platinum XPT=
climbed 1% to $887.73 and palladium XPD= was 2.5% higher at
$2,311.07.